Atlanta & Southeast News In Your Inbox
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
CMBS Loan Loss Volume Decreases in June
In June, $244 million across 12 CMBS loans were resolved with $92.79 million in losses, carrying an average loss severity of 38.04% for the month, Trepp’s Jack LaForge reported. This represented a sizeable decrease in loan loss volume from the previous month. The 12-month average disposition balance fell to $316.42 million, while the 12-month moving average loss severity stood at 57.51%, slightly up from 56.91% seen in May.
The largest loan to resolve with a loss in June is the $89.40-million Florence Mall, backed by a 384,111-square-foot regional mall in Florence, KY, within the Cincinnati metro area.
The collateral was valued at $158.6 million in 2012, which had fallen to $47.1 million as of December 2021. This June, the mall was acquired for $37.8 million by Mason Asset Management and Namdar Realty.
“Despite the low sales price, liquidation proceeds were considerably higher,” LaForge reported. “Servicer data reports liquidation proceeds of $44.3 million, making the loss in the subordinate tranches of the deal lower than what was expected.”
- ◦Sale/Acquisition
- ◦Financing
